Israel’s geothermal company Ormat Technologies has signed a $245 million deal to provide geothermal energy in Indonesia. The Yavne-based company will design the Sarulla geothermal power station in Sumatra and supply its Ormat Energy Converters to the new power plant.
The Sarulla project is the largest single contract geothermal power project to capitalize on the highly productive Indonesian geothermal resources. The project will be implemented in three phases of 110 MW each, utilizing both steam and brine extracted from the geothermal field to increase the power plant’s efficiency.
The first phase is scheduled to begin operation in 2016.
Ormat’s Energy Converter is a power generation unit that converts low-, medium- and high-temperature heat into electricity.
“Once the financing closes, we will be able to recognize revenues from the supply of the equipment over the construction period and further strengthen the performance of our Product Segment. This project, represents our entry into Indonesia, a region we have been excited about for some time, ” Dita Bronicki, Ormat’s Chief Executive Officer, said in a statement. “We believe the potential opportunity in Indonesia is significant, and we look forward to pursuing opportunities in what we anticipate will be a growing market in the years to come.”